Which of the following is the speed at which units must be manufactured to meet customer demand?

Which
function(s) is/are the bottleneck(s)?
A. Exterior
construction and pulp filter insertion.

B. Pulp
filter insertion.
C. Painting.

D. Packaging.

E. Exterior
construction.

41.
What is the least amount of monthly
capacity you would have to add to the bottleneck(s) to shift the bottleneck to
a different process?

A. 2,000,001
juicers per month.
B. 600,001
juicers per month.
C. 1,320,001
juicers per month.
D. 50,001
juicers per month

43.
What
cost management technique does this case illustrate?
A. Target
costing.
B. Theory
of constraints.
C. Life-cycle
costing.
D. ABC
analysis.

44.
Place the phases of the cost life cycle
(value chain) in the correct order from upstream to downstream activities.

A. Manufacturing,
R&D, Design, Customer Service, Marketing & Distribution.
B. Design,
R&D, Marketing & Distribution, Manufacturing, Customer Service.
C. Customer
Service, Design, R&D, Manufacturing, Marketing & Distribution.
D. R&D,
Design, Manufacturing, Marketing & Distribution, Customer Service.
E. Marketing
& Distribution, Customer Service, Design, R&D, Manufacturing.

45.
Target
cost can be defined as:
A. Manufacturing
cost – sales price.

B. Competitive
price – desired profit.
C. Desired
profit – market price.
D. Target
price – manufacturing cost.

46.
Which
of the following is the speed at which units must be manufactured to meet
customer demand?
A. Production
time.

B. Manufacturing
time.
C. Takt
time.
D. Throughput
time.

Electronic
Component Company (ECC) is a producer of high-end video and music equipment.
ECC currently sells its top of the line “ECC” DVD player for a price
of $250. It costs ECC $210 to make the player. ECC’s main competitor is coming
to market with a new DVD player that will sell for a price

of
$220. ECC feels that it must reduce its price to $220 in order to compete. The
sales and marketing department of ECC believes the reduced price will cause
sales to increase by 15%. ECC currently sells 200,000 DVD players per year.

47.
Irrespective of the competitor’s price,
what is EEC’s required selling price if the target profit is 25% of sales and
current costs cannot be reduced?

A. $280.00.

B. $292.50.

C. $299.00.

D. $308.50.

48.
What
is the target cost if target profit is 20% of sales and ECC must meet the
competitive price of $220?

A.
$168.50.

B. $176.00.

C. $184.25.

D. $190.00.

49. Assuming
sales and marketing are not correct in their estimation and the volume of sales
is not changed and ECC meets the competitive price, what is the target cost if
ECC wants to maintain its same income level?

A. $210.

B. $200.

C. $190.

D. $180.

50.
Which
of the following phases are included in the sales life cycle?

A.
Option
A
B. Option
B
C. Option
C
D. Option
D 40.
Which
function(s) is/are the bottleneck(s)? A. Exterior
construction and pulp filter insertion. B. Pulp
filter insertion. C. Painting.
D. Packaging.
E. Exterior
construction. 41.
What is the least amount of monthly
capacity you would have to add to the bottleneck(s) to shift the bottleneck to
a different process? A. 2,000,001
juicers per month. B. 600,001
juicers per month. C. 1,320,001
juicers per month. D. 50,001
juicers per month 43.
What
cost management technique does this case illustrate? A. Target
costing. B. Theory
of constraints. C. Life-cycle
costing. D. ABC
analysis. 44.
Place the phases of the cost life cycle
(value chain) in the correct order from upstream to downstream activities. A. Manufacturing,
R&D, Design, Customer Service, Marketing & Distribution. B. Design,
R&D, Marketing & Distribution, Manufacturing, Customer Service. C. Customer
Service, Design, R&D, Manufacturing, Marketing & Distribution. D. R&D,
Design, Manufacturing, Marketing & Distribution, Customer Service. E. Marketing
& Distribution, Customer Service, Design, R&D, Manufacturing. 45.
Target
cost can be defined as: A. Manufacturing
cost – sales price. B. Competitive
price – desired profit. C. Desired
profit – market price. D. Target
price – manufacturing cost. 46.
Which
of the following is the speed at which units must be manufactured to meet
customer demand? A. Production
time.

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